Santam CEO: Here’s R1bn, but we’re still not liable for lockdown claims. MUST LISTEN!

Santam, South Africa's largest short-term insurer, has been making headlines in recent months – for all the wrong reasons. While the tourism and hospitality sectors have been in absolute turmoil because of Covid-19 and the strict national lockdown, the insurance giant has repeatedly repudiated their claims on Business Interruption policies. Even after a precedent-setting and significant court victory between a small Cape Town restaurant and and Guardrisk – a  leading insurer – Santam has not budged on its stance that the lockdown is not covered under its policies. In this podcast, BizNews founder Alec Hogg speaks to Santam CEO Lizé Lambrechts in an effort to try to understand the thoughts behind the insurance heavyweight's "infuriating" decisions. Santam announced at the weekend that it is setting aside R1bn for some of its clients, with the caveat that its bosses continue to believe it is on firm legal footing in repudiating business insurance claims. RMB Attorneys – a legal firm representing over 340 business interruption claimants countrywide – has slammed this relief and has told the FSCA that the relief offered is tantamount to converting valid business interruption policies into funeral cover. These 'voluntary relief payments' sadly appear to be but a band-aid for a bullet wound. – Nadya Swart

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